Ethereum (ETH) price is presently reeling from the ongoing downtrend that brought the second-biggest cryptocurrency below $3,000.
The investors, however, are still optimistic about recovery, which could occur if the broader market cues shift.
Ethereum Investors Show Bullishness
Ethereum price is expected to witness the impact of ETH holder’s actions, which are presently in favor of a rally. The investors are choosing to opt out of selling their holdings, which is evident from the decline in active deposits.
Active deposits highlight the ETH deposit addresses that move their holdings from their wallet to exchanges. This usually indicates the sentiment of selling and a spike in the same hints at rising bearishness.
However, at the moment, Ethereum is not only witnessing a dip in the same, but the metric is at an eight-month low. Thus, ETH holders are not too keen on selling at the moment.
Ethereum Active Deposits. Source: Santiment
Secondly, Net Unrealized Profit/Loss fell below 0.5 at the beginning of April and is presently above 0.4. The NUPL is used to analyse the overall profit or losses that would be witnessed by investors should they sell at current prices.
These profits have declined, but investors are still optimistic about a recovery. Historically, NUPL dipping into this zone has been followed by extended corrections and considerable rallies.
Read More: How to Invest in Ethereum ETFs?
Ethereum NUPL. Source: Glassnode
The same is also expected this time, pushing Ethereum’s price back up.
ETH Price Prediction: Awaiting a Breakout
At the time of writing, Ethereum’s price can be seen changing hands at $2,973 after falling below $3,000 in the last few days. Stuck in a descending wedge, ETH awaits a breakout above the upper trend line, coinciding with $3,000.
Securing this price into a support floor is crucial, and given the investors are pushing for a rise, this could be the likely outcome. A breakout would also enable ETH to push towards $3,280, reclaiming which is crucial to successfully initiating a recovery.
Read More: Ethereum (ETH) Price Prediction 2024/2025/2030
Ethereum Price Analysis. Source: TradingView
On the other hand, a dip to $2,800 and a breakout below the lower trend line would mean the bearish cues are dominant. This could lead to further decline, sending ETH to $2,600, invalidating the bullish cues.
